GOVZ vs SCHD
iShares 25+ Year Treasury STRIPS Bond ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. GOVZ delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | GOVZ | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.10% | 0.06% | |
| AUM | $268M | $103.7B | |
| Dividend Yield | 4.77% | 3.31% | |
| Holdings | 22 | 104 | |
| YTD Return | +261.76% | +25.58% | |
| 1Y Return | +264.97% | +31.06% | |
| 3Y Return (annualized) | +46.93% | +15.55% | |
| 5Y Return (annualized) | +12.94% | +9.61% | |
| Volatility (annualized) | 126.3% | 13.6% | |
| Max Drawdown | -59.6% | -33.4% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Sep 22, 2020 | Oct 20, 2011 |
GOVZ vs SCHD Performance
iShares 25+ Year Treasury STRIPS Bond ETF (GOVZ) is a ETF from iShares by BlackRock (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year GOVZ returned +264.97% while SCHD returned +31.06%. Year to date, GOVZ is up 261.76% versus a gain of 25.58% for SCHD.
Over three years, GOVZ compounded at +46.93% per year against +15.55% for SCHD; over five years the annualized figures are +12.94% and +9.61% respectively. Across the full 6-year window we track, SCHD has the edge at +11.46% annualized vs +8.08%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
GOVZ has been the more volatile fund, with annualized monthly volatility of 126.3% compared with 13.6% for SCHD. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -59.6% for GOVZ and -33.4% for SCHD. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.06. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
GOVZ charges 0.10% per year while SCHD charges 0.06%. On a $10,000 position that is $10 vs $6 annually, a gap of $4 per year that compounds over a long holding period. On income, GOVZ currently yields 4.77% against 3.31% for SCHD.
Holdings Overlap
GOVZ and SCHD share 0 holdings out of 112 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, GOVZ or SCHD?
GOVZ has an expense ratio of 0.10% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $4 per year of difference.
Which performed better, GOVZ or SCHD?
Over the past year GOVZ returned +264.97% vs +31.06% for SCHD, so GOVZ leads on 1-year performance. Over the longest common window we track (6 years), GOVZ annualized +8.08% vs +11.46% for SCHD. Past performance does not guarantee future results.
Which is riskier, GOVZ or SCHD?
GOVZ has been the more volatile fund at 126.3% annualized versus 13.6% for SCHD. Worst drawdown: GOVZ -59.6% vs SCHD -33.4%.
Should I hold both GOVZ and SCHD?
GOVZ and SCHD have a monthly-return correlation of 0.06, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between GOVZ and SCHD?
GOVZ and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 112 unique securities.
Which pays a higher dividend, GOVZ or SCHD?
GOVZ yields 4.77% while SCHD yields 3.31%, so GOVZ currently pays the higher dividend yield.
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